Zscaler’s (ZS) “Buy” Rating Reaffirmed at Needham & Company LLC

Zscaler (NASDAQ:ZS)‘s stock had its “buy” rating reiterated by investment analysts at Needham & Company LLC in a research note issued on Wednesday,Benzinga reports. They presently have a $180.00 price objective on the stock. Needham & Company LLC’s price objective suggests a potential upside of 43.04% from the company’s current price.

A number of other research firms have also recently commented on ZS. BTIG Research reissued a “neutral” rating on shares of Zscaler in a research note on Thursday, April 9th. Canaccord Genuity Group dropped their price target on shares of Zscaler from $275.00 to $210.00 and set a “buy” rating on the stock in a research note on Wednesday, May 27th. Rosenblatt Securities reduced their price objective on shares of Zscaler from $223.00 to $200.00 and set a “buy” rating for the company in a research note on Wednesday, May 27th. Citizens Jmp decreased their target price on shares of Zscaler from $290.00 to $210.00 and set a “market outperform” rating for the company in a report on Friday, May 1st. Finally, Wells Fargo & Company dropped their target price on shares of Zscaler from $210.00 to $180.00 and set an “overweight” rating on the stock in a research note on Thursday, May 28th. Thirty-three equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $216.03.

Zscaler Price Performance

Shares of NASDAQ ZS opened at $125.84 on Wednesday. The company has a 50 day simple moving average of $143.22 and a two-hundred day simple moving average of $180.32. Zscaler has a fifty-two week low of $114.63 and a fifty-two week high of $336.99. The company has a market capitalization of $20.35 billion, a price-to-earnings ratio of -262.16, a P/E/G ratio of 80.81 and a beta of 0.97. The company has a debt-to-equity ratio of 0.72, a quick ratio of 1.86 and a current ratio of 1.86.

Zscaler (NASDAQ:ZS) last posted its quarterly earnings results on Tuesday, May 26th. The company reported $1.08 earnings per share for the quarter, topping the consensus estimate of $1.01 by $0.07. Zscaler had a negative return on equity of 0.37% and a negative net margin of 2.44%.The company had revenue of $850.48 million for the quarter, compared to the consensus estimate of $835.14 million. During the same quarter in the prior year, the business posted $0.84 EPS. The firm’s quarterly revenue was up 25.4% compared to the same quarter last year. Zscaler has set its Q4 2026 guidance at 1.080-1.090 EPS and its FY 2026 guidance at 4.100-4.110 EPS. Analysts expect that Zscaler will post 0.11 EPS for the current fiscal year.

Insiders Place Their Bets

In other Zscaler news, CFO Kevin Rubin sold 1,682 shares of the company’s stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $156.59, for a total transaction of $263,384.38. Following the transaction, the chief financial officer owned 46,479 shares in the company, valued at approximately $7,278,146.61. This represents a 3.49% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Jagtar Singh Chaudhry sold 1,941 shares of the firm’s stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $156.59, for a total transaction of $303,941.19. Following the sale, the chief executive officer directly owned 345,916 shares in the company, valued at approximately $54,166,986.44. The trade was a 0.56% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 12,130 shares of company stock worth $1,892,487 in the last quarter. Insiders own 17.20% of the company’s stock.

Institutional Investors Weigh In On Zscaler

A number of large investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. lifted its holdings in shares of Zscaler by 0.5% during the 4th quarter. Vanguard Group Inc. now owns 11,423,424 shares of the company’s stock valued at $2,569,357,000 after buying an additional 55,521 shares during the period. Groupama Asset Managment increased its position in Zscaler by 76,352.6% during the third quarter. Groupama Asset Managment now owns 4,750,000 shares of the company’s stock valued at $1,423,385,000 after acquiring an additional 4,743,787 shares during the last quarter. First Trust Advisors LP increased its position in Zscaler by 36.2% during the first quarter. First Trust Advisors LP now owns 3,518,678 shares of the company’s stock valued at $493,635,000 after acquiring an additional 935,781 shares during the last quarter. Price T Rowe Associates Inc. MD lifted its holdings in Zscaler by 43.3% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 2,572,358 shares of the company’s stock valued at $578,576,000 after acquiring an additional 777,414 shares during the period. Finally, State Street Corp boosted its position in Zscaler by 3.4% in the fourth quarter. State Street Corp now owns 2,337,604 shares of the company’s stock worth $525,774,000 after purchasing an additional 77,800 shares during the last quarter. Institutional investors own 46.45% of the company’s stock.

Trending Headlines about Zscaler

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Zscaler unveiled new AI-security products, including AI Broker and Endpoint AI Security, to protect AI agents, endpoints, and enterprise data as more workflows shift to agentic AI. Zscaler Unveils New Product Innovations to Secure Agentic AI
• Positive Sentiment: The company expanded Project AI-Guardian with partners including AWS, Google Cloud, OpenAI, Databricks, CoreWeave, Equinix, Glean, NTT DATA, and Saviynt, which could strengthen Zscaler’s position as an AI security platform and improve adoption. Zscaler Expands AI-Guardian, Uniting Tech Giants to Secure Enterprise AI at Scale
• Positive Sentiment: Zscaler’s CEO argued that AI will create “billions of agents” that need cybersecurity protection, reinforcing the bull case that ZS can benefit from the rise of autonomous AI workflows. Zscaler CEO: AI Will Create ‘Billions of Agents’ That Need Cybersecurity Protection
• Neutral Sentiment: Zscaler’s new products and partnership announcements highlight strong strategic momentum, but the releases also include forward-looking caveats about customer adoption and execution risk. Zscaler Unveils New Product Innovations to Secure Agentic AI
• Negative Sentiment: Broader market reaction to Anthropic’s new models pressured cybersecurity and software names, including Zscaler, on concern that the competitive AI landscape could shift investor sentiment away from the group. Zscaler, Dynatrace, and Nutanix Shares Are Falling, What You Need To Know
• Negative Sentiment: New class-action deadline reminders and a separate fraud investigation notice add legal overhang for ZS shares. ZS DEADLINE: The Gross Law Firm Reminds Zscaler, Inc. Investors of Upcoming Securities Class Action Deadline

Zscaler Company Profile

Zscaler is a cloud security company that delivers a cloud-native platform to protect users, applications and data as organizations move away from traditional, network-centric security architectures. The company focuses on a zero trust approach that assumes no implicit trust for users or devices, providing secure access to the internet, SaaS applications and private applications regardless of where users are located. Zscaler positions its services as an alternative to legacy appliances and site-centric VPNs, aiming to simplify security while enabling modern, distributed workforces.

Key offerings are built around the Zscaler Zero Trust Exchange, a multi-tenant cloud platform that enforces security and access policies in-line.